Title: Influence of managed and unmanaged operating and financial performance on firm value

Authors: I. Putu Sugiartha Sanjaya; Si Made Kanaka Putri Jelantik Padma Sanjaya; I. Gede Siswantaya

Addresses: Faculty of Business and Economics, Accounting Department, Universitas Atma Jaya Yogyakarta, Jl. Babarsari, No. 43 Yogyakarta, 55281, Indonesia ' Faculty of Business and Economics, Accounting Department, Universitas Atma Jaya Yogyakarta, Jl. Babarsari, No. 43 Yogyakarta, 55281, Indonesia ' Faculty of Business and Economics, Accounting Department, Universitas Atma Jaya Yogyakarta, Jl. Babarsari, No. 43 Yogyakarta, 55281, Indonesia

Abstract: This study empirically examines whether managed and unmanaged operating and financial performance influence firm value. Managed operating and financial performance proxied return on assets (ROA) and return on equity (ROE). Unmanaged operating performance is ROA minus accrual and real earnings management. Unmanaged financial performance is ROE minus accrual and real earnings management. This study uses Tobin's Q to measure firm value. Data is collected from the Indonesia Stock Exchange (IDX) and yahoofinance.com. This study uses a purposive method for manufacturing companies at the IDX from 2018 to 2020 and provides empirical evidence that managed operating and financial performance does not influence firm value. Unmanaged operating performance positively influences firm value. The implication of this study for the international market is that investors in the global capital market should be more prudent when analysing financial reports related to company performance, which contain choices of accounting policies and real activities with opportunistic intentions.

Keywords: managed; unmanaged; operating; financial; firm value.

DOI: 10.1504/IJMEF.2025.148116

International Journal of Monetary Economics and Finance, 2025 Vol.18 No.2/3, pp.119 - 128

Received: 09 Feb 2024
Accepted: 30 Oct 2024
Published online: 25 Aug 2025 *

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